Rental Property Amongst the Scope of Investment Property in Dallas
Loosing value in property has shown to be strong across the U.S. Dallas investment properties finally got hit with the economic storm but it took them longer to feel the effect. Slower sales in real estate has hurt the rental property market within . In Dallas, rental property has an interesting trend between the 1 bedroom, 2 bedroom, and 3 bedroom properties.
The last 6 months has shown volatile highs and lows for rental property rates in Dallas. The rates from much of the rental properties from 1 bedroom and larger were falling from the last quarter of 2008 until the start of December. In December, rents made a climb and continued through the month until January where it went flat . From January to the beginning of March rates remained stabilized.When rates began to fall in march they didn’t stop until the start of April.
The part that is noticeable is the three bedroom properties have a larger rent rate spread than that of the one and two bedroom properties. It’s hard to know exactly why this is but one can speculate. Any three bedroom or larger property is commonly more to rent that 1 and 2 bedroom properties. Unstable rent rates in the market can also come from a higher rent rate which places more of a burden on the tenant and that can lead to an eviction or abandonment from the tenant.When this happen the landlord needs to rent the property quickly to pay the upcoming mortgage.In order to find a renter fast a property owner will reduce rents to attract somebody into a property. If this kind of activity is going on throughout the community it could cause a more volatile price movement and in this case it’s the 3 bedroom and larger Dallas rental property.That being said, Dallas investment property has been known to be a safer real estate investment comparing to other areas of the country.One and two bedroom rental property in Dallas have more stable rent rates than those of larger properties.
The high foreclosure rate in the nation might be another cause. Families are unfortunately moving out of their homes and most are going to a larger rental property which are often the 3 bedrooms and higher. Sometimes these renters move a bunch of times before they find where they want to live.When this activity occurs with larger rental property it can cause volatility.
3 bedroom and larger rental properties had a high of $2,925 and a low of $1,950 from November 2008 to April 2009 which is a 34% fall from the high. 2 bedroom units had a rent high of $1,575 and a low of $1,350 which is a 14.Two percent drop from its high. 1 bedroom units had a high of $1,125 and a low of $950 which is a 15.5% drop from its high. 2 bedroom rental property within the scope of Dallas investment property had more stability for the investor over the last 6 months.